PETALING JAYA: Telekom Malaysia Bhd (TM) has dropped its unlimited prepaid Internet data to RM35 per month from RM55 thereby staying in the competition which is expected to escalate.
AmInvestment Bank Research said it awaits postpaid packages being launched by Maxis Bhd and Celcom Axiata Bhd over the next few months in tandem with the escalating cellular wars which will constrain any increase in average revenue per user.
TM’s unifi Mobile recently cut its unlimited prepaid Internet data under its #BEBAS plans to RM35/month from RM55/month. It joins players like Maxis and Celcom which have dropped prices recently.
The report said unifi Mobile is also offering weekly unlimited Internet passes for RM12, down from RM20. The unlimited passes appear to be only available for LTE data which means customers may need to purchase a separate data pass in areas outside of unifi Mobile’s 4G coverage, it said..
It added that unifi’s unlimited postpaid plan has been cut to RM59 per month from RM99 per month under a 12-month contract.
But for now, U Mobile, unifi Mobile and Digi.com Bhd are the only celcos offering standalone unlimited postpaid data plans.
The most affordable postpaid plan is still U Mobile’s GX50 postpaid plan. It offers unlimited data and calls plus 5GB of hotspot sharing at a discounted RM40 per month (from RM50 per month), it said.
Digi offers its Infinite online plan with unlimited data at speeds up to 10Mbps and calls at RM100 per month. For over two years, Maxis has bundled its Home Fibre services by offering postpaid plans with unlimited data starting at RM98 per month while Celcom does not have an unlimited postpaid package currently.
U Mobile’s subscriber base has risen to one million but it is still far behind Maxis’ 11.3 million, Digi’s 11 million and Celcom’s 8 million.
“While TM aims to be EBITDA (earnings before interest, tax, depreciation and amortisation) positive next year, we are conservative in our forecasts given the ongoing intense mobile competition.”
It said TM’s stake in webe rose to 91.8% recently from 72.9% with the exchange of its Green Packet’s remaining shares and convertible unsecured medium term notes.
It added that against the backdrop of higher capital expenditure needs and weak near-term earnings outlook, the stock currently trades at a fair financial year 2021 enterprise value/EBITDA of 5x with a decent dividend yield of 3%.
The house has maintained a “hold’’ on with a fair value of RM4.15 a share.